Wash Trading
Fake trading against oneself to inflate volume and create an illusion of activity — rampant on low-quality venues.
Wash trading is buying and selling the same asset with oneself (or coordinated accounts) to manufacture volume that doesn’t reflect genuine demand. It creates a false impression of liquidity and interest, luring real traders to a token, exchange, or NFT collection.
Studies have found large fractions of reported volume on some exchanges and NFT marketplaces to be wash trades. The practical defenses: cross-check a token’s volume across reputable venues, be suspicious when an unknown asset shows volume rivaling major coins, and weight on-chain settlement over self-reported exchange figures. Wash trading is a core reason headline volume numbers deserve skepticism — a theme running through crypto’s data.